BUSINESS PLAN
START-UP GUIDE
Putting Together a Winning Team
When forming a business plan team, it is beneficial to have people with a variety of interests,
experiences, and passions. Diversity will strengthen your brainstorming abilities and simplifies task assignment. The table below is an example of various qualities, interests, and expertise of individual members that may contribute to developing a strong, competitive team.
Member quality/interest/expertise Best Suited for Good at organizing, editing, and setting
deadlines Team Captain
Interested in or has a background in
marketing, design, or patient recruitment Marketing Section Interested in or has a background in
finances, accounting, loans, or business administration
Financial Section Interested in or has a background in
program development and clinical services Product and Service Development Section Interested in or has a background in law,
business administration, or population analysis
Description of Business Section Interested in or has a background in
Helpful Professional Resources When Developing Your Business Plan
• Independent pharmacist
It may seem obvious, but it will be beneficial to seek out more than one independent pharmacist, preferably one who is an owner. Independent pharmacists will be one of your best resources, as they have tremendous insight into the business of
pharmacy. Most are more than willing to work with students, share their knowledge and expertise, and provide tours of their store.
If you need assistance locating an independent pharmacist in your area, a list of NCPA member owners can be provided by contacting NCPA student affairs at
studentaffairs@ncpanet.org. • Lawyer
A lawyer who is well versed in business structuring can help determine the proper structure for your pharmacy. They can also help ensure that your business plan includes liability protection and that your pharmacy’s finances will benefit the most come tax season.
• Accountant/Banker
An accountant or banker can be a remarkable tool when planning your business plan finances. Their expertise, along with use of the NCPA Digest sponsored by Cardinal Health, will ensure that your financial projections are sound, realistic, and applicable. They should be able to help you develop your balance sheet, income statement, cash flow statement, and pro forma statements, as well as make sure that your ratios are in line with your competition. NCPA members can access the NCPA Digest in the
members’ only section of the NCPA website at www.ncpanet.org. • Insurance Agent
An insurance agent familiar with small businesses can be valuable in determining any threats your pharmacy may encounter and find solutions to ensure that your pharmacy and its employees are well protected.
Selecting your pharmacy
The three most important factors in selecting a pharmacy are 1) location, 2) location, and 3) location. The pharmacy chosen by you and your team will greatly impact the direction of your plan. Whether you decide to purchase an existing pharmacy or start a new one, a thorough location analysis is recommended.
Purchasing an Existing Pharmacy
Keep in mind that your goal is to improve an already existing model. Choosing a pharmacy in an area of growing need provides you an opportunity to expand your pharmacy services. Find a pharmacy that allows you more room to showcase business ideas that will improve the success of the business.
Starting a New Pharmacy
Location is of greater emphasis when starting a brand new pharmacy, since you will also have to build your customer base from the ground up. Something as simple as what side of the street the pharmacy sits on can double or cut your business in half. Keep in mind that accessibility is a key determinant of a successful business.
Obtaining Pharmacy Participation to Provide Resource
When approaching the pharmacy owner for permission to view their financials or other resources, ask if they are familiar with the NCPA Business Plan Competition. Initially, owners may be hesitant to open their books to you, but providing some background information on the competition may help alleviate some of their concerns. If they are still hesitant, ask them if they would be willing to mentor you through the process. Helpful tips:
Do your research before dropping by the pharmacy.
Be familiar with their customer demographics and identify any potential
opportunities to widen their range of services. Presenting this information to the pharmacist can offer new perspectives on how to improve their operations, and will make the pharmacist more inclined to working with you.
Communicate to the owner how you will maintain the store owner’s confidentiality. This is very important.
Be patient. Owners are busy running their stores and possibly other businesses as well. Plan accordingly and set up meetings early when possible.
The owner may still decline to participate. All is not lost. Keep contacting other pharmacies. Ask team advisors, faculty members, and practicing pharmacists if they know of a pharmacy owner that would be interested in participating.
Final Words
“Entrepreneurs must learn to be like bloodhounds. They must learn how to sniff out the unmet needs of the people they wish to serve. To win new customers, ask the golden question: "What's the unmet want and how can we meet this unmet want before anybody else does?"
-Peter Patsula
Remember that innovation is what defines independent pharmacy. You may be
modeling a pharmacy that is quite different than what the original plan called for. Given this new and different pharmacy, it is up to you and your team to analyze the market, identify new opportunities, and expand services to meet customer needs.
Additional Resources
Provided are several sites that may be helpful during your initial research. There are numerous resources available, so be resourceful and select those that align parallel to your business mission and objectives.
State and Quick County Facts. U.S. Census Bureau: http://quickfacts.census.gov
Managing the Pharmacy Inventory.
http://www.ncpanet.org/members/pdf/ownership-managinginventory.pdf
Advantage Software LLC. Depreciation – Depreciation Real Estate:
http://www.invest-2win.com/depreciation.html
